The luxury residential market in Madrid, according to the report "Luxury Homes 2023" by the consultancy firm Colliers, shows an upward trend in sales prices, especially in the Ultra High-End segment. This segment, which includes properties priced at over five million euros, has reached sales prices of close to 25,000 euros per square metre.
The study has analysed the stock of new-build luxury multi-family housing in prime areas of Madrid, such as Barrio de Salamanca, Chamberí and El Viso, with prices in excess of two million euros. Forty-six luxury homes for sale were identified in these areas, 65% of which are in the Barrio de Salamanca. Of the total, 35% are considered Ultra High-End, 39% in the Premium category (between two and 3.5 million euros), and 26% in the High-End range (between 3.5 and five million euros).
Luis Valdés, Managing Director of Residential Sales Advisory at Colliers, notes: "The Ultra High-End market is largely driven by the success of Branded Residences. Four Seasons Residences was a pioneer in Madrid, a project that we marketed at Colliers between 2017 and 2019, and which has acted as a magnet for new Branded Residences. This type of product, with very high qualities and services, contributes to raising the market and therefore has a direct effect on price increases. Its success in sales and marketing rates means that many other luxury brands such as Rosewood, St. Regis, Six Senses or Fairmont are currently studying the possibility of establishing themselves in the Salamanca neighbourhood and/or Chamberí".
Regarding the buyer profile, the Premium segment is dominated by national buyers looking for a first or replacement property. In the High-End and Ultra High-End segments, there is an international profile that acquires the property as a second or third home or for investment.
The outlook for 2024 indicates a concentrated supply in the Barrio de Salamanca, with Madrid attracting international capital. Valdés adds: "The price per square metre of new luxury housing will move in the future in the range of between 12,000 and 22,000 euros depending on the segments. In the case of penthouses and, occasionally, some Branded Residences or singular assets, the barrier of 25,000 euros per square metre will be broken".
Antonio de la Fuente, Managing Director of Corporate Finance at Colliers, highlights that residential investment for refurbishment as luxury developments has been a prominent segment in 2023 and is expected to continue in 2024. The purchase impact prices of buildings for refurbishment as luxury developments are between €8,000 and €10,000 per square metre, with an upward trend in unit sales prices.
